SANTA CLARA, Calif., Oct. 13 /PRNewswire/ -- Cell Biosciences, Inc. today announced that it has entered into a definitive agreement to acquire Convergent Bioscience Ltd. for approximately U.S. $12 million in cash. The transaction is expected to close by the end of October, 2010.
Convergent Bioscience was founded in 1995 and employs 45 people, primarily at its headquarters in Toronto, Ontario. Convergent pioneered the use of imaging capillary electrophoresis for protein charge heterogeneity characterization, a critical quality control measurement performed during protein biologics production. Convergent's products have become the acknowledged gold standard for biologics charge heterogeneity quality control monitoring. More than 320 systems have been purchased by over 100 Pharma and Biotech companies globally for this purpose. Convergent's 2010 revenues are expected to be near U.S. $8 million.
This strategic acquisition will significantly expand Cell Biosciences' portfolio of protein analysis products and transform Cell Biosciences into the premier provider of capillary-based protein analysis technology. By acquiring Convergent Bioscience, with its strong position in biologics quality control, Cell Biosciences will gain access to an attractive, high-growth segment of the protein therapeutics market. This acquisition marks an important step toward Cell Biosciences' strategic goal of becoming a leading global provider of protein analysis technologies.
Commenting on the transaction, Tim Harkness, President and Chief Executive Officer of Cell Biosciences, said, "The strategic fit between Cell Biosciences and Convergent Bioscience is nearly perfect. Our NanoPro systems and the Convergent iCE280 are based upon similar technologies, but each platform has been optimized for distinct applications in distinct markets. We expect to realize immediate synergies across both organizations, ultimately leading to groundbreaking next-generation products for our customers."
Arthur Watson, President and Chief Executive Officer of Convergent Bioscience, added, "Cell Biosciences' technological expertise, worldwide distribution channels, and strong commitment to customers make it an ideal partner for Convergent. This combination will strengthen our ability to penetrate international markets and to develop innovative new products for biologics characterization."
In connection with the transaction, Cell Biosciences has entered into agreements to raise approximately $20 million in a Series F Preferred Stock financing led by Essex Woodlands Health Ventures. Existing investors, including The Wellcome Trust, Novo A/S, Domain Associates, Latterell Venture Partners, Royal Bank of Canada, The Vertical Group and Lansing Brown Investments, LLC have agreed to participate in the financing.
ABOUT CELL BIOSCIENCES
Cell Biosciences is a private life sciences company focused on defining the future of protein analysis. The Company develops instrumentation systems, sample preparation systems, software and assay products that drive discoveries in fields ranging from fundamental protein research to biomarker discovery and personalized medicine. With an installed base of over 10,000 systems, its customers include leading research institutions, pharmaceutical and biotechnology companies worldwide. Cell Biosciences is headquartered in Santa Clara, California. For more information, visit www.cellbiosciences.com.